Property, Plant and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

The components of property, plant and equipment are as follows:



(in thousands)	June 30, 2016		December 31, 2015		June 30, 2015
Land	$	28,472	$	29,928	$	29,902
Land improvements and leasehold improvements	77,849		77,191		75,822
Buildings and storage facilities	290,528		303,482		296,035
Machinery and equipment	374,107		375,028		356,759
Construction in progress	51,672		32,871		21,803
	822,628		818,500		780,321
Less: accumulated depreciation	375,361		363,240		343,247
	$	447,267	$	455,260	$	437,074

Depreciation expense on property, plant and equipment was $23.8 million and $22.3 million for the six months ended June 30, 2016 and 2015, respectively. Additionally, Depreciation expense on property, plant and equipment was $11.6 million and $11.4 million for the three months ended June 30, 2016 and 2015, respectively. Capitalized software has been reclassified from property, plant, and equipment, and is now presented as a component of other intangible assets. Prior year balance sheets have been recast to conform with the current period presentation.

Rail Group Assets

The components of Rail Group assets leased to others are as follows:



(in thousands)	June 30, 2016		December 31, 2015		June 30, 2015
Rail Group assets leased to others	$	442,239	$	434,051	$	422,810
Less: accumulated depreciation	102,103		95,940		91,978
	$	340,136	$	338,111	$	330,832

Depreciation expense on Rail Group assets leased to others amounted to $9.3 million and $8.3 million for the six months ended June 30, 2016 and 2015, respectively. Additionally, Depreciation expense on Rail Group assets leased to others amounted to $4.7 million and $4.3 million for the three months ended June 30, 2016 and 2015, respectively.

Sale of Assets

On April 5, 2016 the Company's Board of Directors approved the sale of eight grain and agronomy locations in Iowa to MaxYield Cooperative of West Bend, Iowa. The Andersons acquired these locations as a part of its 2012 acquisition from Green Plains Grain Company. The Tennessee assets acquired during that same transaction will remain a part of the Company.

This transaction closed on May 2, 2016.

Total cash received was $54.3 million and a nominal gain was recognized on the sale.